If you use an ADW and finish a couple of thousand dollars ahead for the year without hitting any "tax" tickets, does the ADW report this to the IRS or issue any kind of tax document at all to either the player or the government at the end of the year?

NorCalGreg

03-07-2016, 04:35 AM

If you use an ADW and finish a couple of thousand dollars ahead for the year without hitting any "tax" tickets, does the ADW report this to the IRS or issue any kind of tax document at all to either the player or the government at the end of the year?

Nope.....keep your money in your pocket. No "signers", no W-2g's...a few grand----you're good to go. :ThmbUp:

12/ALL/ALL

03-07-2016, 05:30 AM

Thnx for info.

098poi

03-07-2016, 09:46 AM

The IRS may not be alerted but I think in theory you are supposed to report any gambling income. :rolleyes:

But they'll never know 12/ALL/ALL who lives in East Hartford, Connecticut. (Just messing with you)

raybo

03-07-2016, 11:03 AM

ADWs are legally bound to furnish betting records to authorized governmental agencies, upon request. So, even though no "forms" were issued to you, that does not mean that you are absolutely free and clear. If your ADW is asked for your betting records by an authorized agency, those records will be produced, and you can be held responsible.

Not likely, unless you have aroused suspicion for some reason, but all of your ADW betting records are available if asked for by an agency that has that power.

12/ALL/ALL

03-07-2016, 11:32 AM

ADWs are legally bound to furnish betting records to authorized governmental agencies, upon request. So, even though no "forms" were issued to you, that does not mean that you are absolutely free and clear. If your ADW is asked for your betting records by an authorized agency, those records will be produced, and you can be held responsible.

Not likely, unless you have aroused suspicion for some reason, but all of your ADW betting records are available if asked for by an agency that has that power. That would be something I would be curious about: Does the IRS contact the ADWs and ask for every account that has more money in it, minus deposits and plus withdrawals, than it did at the start of the year? Is that a productive use of IRS time and resources? I suspect that they don't, but only an ADW or IRS insider would know for sure.

Ocala Mike

03-07-2016, 02:17 PM

I was a NY State Income Tax Auditor, and know plenty of IRS Auditors and existing audit policies. Unless you are a NON-FILER undergoing what is called an "indirect audit" where your income is going to be imputed by your assets and lifestyle, you are pretty much safe from this kind of "hunting expedition."

It is true, however, that the records could be made available to the auditor if his/her suspicion was aroused in any way.

raybo

03-07-2016, 04:10 PM

That would be something I would be curious about: Does the IRS contact the ADWs and ask for every account that has more money in it, minus deposits and plus withdrawals, than it did at the start of the year? Is that a productive use of IRS time and resources? I suspect that they don't, but only an ADW or IRS insider would know for sure.

My understanding is that the IRS will not ask for "blanket" records like you suggest, but rather, individual member records who have come to their attention for whatever reason.

toddbowker

03-07-2016, 04:28 PM

First of all, as others have mentioned, regardless of your having any "signers", every US citizen is required to report gambling winnings on their tax returns. You can offset winnings with losses of course, but if you showed a profit, then you have to report it.

Having said that, ADWs do not report each individual's P&L to the IRS. We do have to send in the transactions subject to reporting (W-2G's), but not your overall P&L. If an ADW received a subpoena from the IRS for your betting records they would have to comply.

In my 16 years of running various ADW's, I have had customers ask for betting reports during an audit, but have never seen (or heard of) the IRS asking an ADW for the information directly.

12/ALL/ALL

03-08-2016, 01:47 PM

First of all, as others have mentioned, regardless of your having any "signers", every US citizen is required to report gambling winnings on their tax returns. You can offset winnings with losses of course, but if you showed a profit, then you have to report it.

Having said that, ADWs do not report each individual's P&L to the IRS. We do have to send in the transactions subject to reporting (W-2G's), but not your overall P&L. If an ADW received a subpoena from the IRS for your betting records they would have to comply.

In my 16 years of running various ADW's, I have had customers ask for betting reports during an audit, but have never seen (or heard of) the IRS asking an ADW for the information directly. Great information from an insider. Thanks and thanks to all the posters in this thread.